56
TEHO INTERNATIONAL INC LTD.
Annual Report 2016
NOTES
TO THE FINANCIAL STATEMENTS
Year ended 30 June 2016
3 SIGNIFICANTACCOUNTING POLICIES (CONT’D)
3.11 Employee benefits (cont’d)
(iii) Share-based payment transactions (cont’d)
The fair value of the amount payable to employees in respect of share appreciation
rights, which are settled in cash, is recognised as an expense with a corresponding
increase in liabilities, over the period that the employees become unconditionally
entitled to payment. The liability is remeasured at each reporting date and
at settlement date based on the fair value of the share appreciation rights.
Any changes in the fair value of the liability are recognised as employee benefits
expense in profit or loss.
3.12 Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow
of economic benefits will be required to settle the obligation. Provisions are determined
by discounting the expected future cash flows at a pre-tax rate that reflects current
market assessments of the time value of money and the risks specific to the liability.
The unwinding of the discount is recognised as finance cost.
A provision for levies is recognised when the condition that triggers the payment of the
levy as specified in the relevant legislation is met.
3.13 Revenue
(i)
Sale of goods
Revenue from the sale of goods in the course of ordinary activities is measured
at the fair value of the consideration received or receivable, net of returns, trade
discounts and volume rebates. Revenue is recognised when significant risks and
rewards of ownership have been transferred to the customer, recovery of the
consideration is probable, the associated costs and possible return of goods can
be estimated reliably, there is no continuing management involvement with the
goods, and the amount of revenue can be measured reliably. If it is probable that
discounts will be granted and the amount can be measured reliably, then the
discount is recognised as a reduction of revenue as the sales are recognised.
3 SIGNIFICANTACCOUNTING POLICIES (CONT’D)
3.13 Revenue (cont’d)
(i)
Sale of goods (cont’d)
The timing of the transfer of risks and rewards varies depending on the individual
terms of the sales agreement.
(ii) Revenue from development properties
Revenue from sales of properties under development is recognised by reference
to the stage of completion using the percentage of completion method when
the Group determines that (a) control and the significant risks and rewards of
ownership of the work-in-progress transfer to the buyer in its current state
as construction progresses, (b) the sales price is fixed and collectible, (c) the
percentage of completion can be measured reliably, (d) there is no significant
uncertainty as to the ability of the Group to complete the development, and (e)
costs incurred or to be incurred can be measured reliably.
In all other instances, revenue from sales of development properties is only
recognised upon the transfer of control and significant risks and rewards of
ownership of the property to the buyer. This generally coincides with the point in
timewhen the development unit is delivered to the buyer. No revenue is recognised
when there is significant uncertainty as to the collectability of consideration due
or the possible return of units sold.
The percentage of completion is measured by reference to the work performed,
based on the stage of completion as certified by the independent architects or
quantity surveyors for the individual units sold. Profits are recognised only in
respect of finalised sales contracts to the extent that such profits relate to the
progress of the construction work. An expected loss on a contract is recognised
immediately in profit or loss.
